Having in mind that the future of tomorrow is held in the palm of our young generation, protecting the children from unforeseen danger and calamities will do the magic of ensuring their safety.
But well, how effective is the preparedness to handle such a risk in the case of occurrence?
Life insurance steps in to fit for this.
No matter how much investment a parent has done in a child, life insurance still ousts to be the most favorable guarantee of the investment.
Life Insurance for children has shifted the norm that insurance related to human life is only used as a cover for income losses in adults.
Besides knowing the value of life insurance, the students should also grasp some knowledge on how and where to learn about this life insurance and the reasons why they should be insured in the first place.
How students learn about life insurance
For students, the value of life insurance must bring out the undoubted meaning to them to make sense of why they should be covered in the first place.
But to begin with, how does a student get an effective insurance cover in the first place?
Ty Stewart from SimpleLifeInsure.com says that the best way to get low-cost life insurance is to work with an independent broker, who knows the business will put you first and will get you the best policy of your situation. Just like any other salesperson competing to beat set quotas by his boss, the independent broker offers an additional explanation on every cover they may have for the student, leaving the student with the choice of choosing what is best tailored for him.
How life insurance works for students
Most students are generally children, even though a good number of them might have hit the threshold of legal age.
In the same case where any other child would be covered, it is the same manner that a child who is a student will be covered.
Most of the insurance covers lying within this bracket are whole life covers which are some sort of permanent cover till the life of the student ceases to exist.
This whole life cover comes in a package inclusive of a savings account, whose maturity only comes after the termination of life. The main advantage of this is that it may be used to settle any hospital bills, or even cater for the burial expenses. The remains may be inherited or channeled to other projects of the deceased.
The other one, though not common in many insurance firms is the term life insurance, which obviously cannot be acquired as a standalone cover exclusively to the child alone. This cover expires at the end of the term, which comes when the student attains adulthood.
Reasons for buying life insurance cover for students
As highlighted, in understanding the value of the life insurance cover, the students also need to understand the surrounding reasons for buying life insurance covers for them. The reasons for buying life insurance cover for students include the following:
The policy may build a cash value
It is obvious that the policy builds cash value, especially if it is a standalone cover. The money insured in this cover matures when the student clocks adulthood, normally the legal age.
When the student had been insured at an early stage, by the time the policy matures, it would have already built itself into little nest eggs in terms of cash. The student can use this cash as a borrow-off policy to pay for the college fees.
However, building cash value is should never be the main reason for buying life insurance for a student, but the right cover acquired can always include a healthy financial perk.
It gives peace of mind
Every student goes to school with the aim of making it in life academic wise. The primary reason why parents send their children in school is perhaps living the hope that one day the child will free them the financial constraints.
Being a student, at the same time covered with life insurance is an edge to both the student and the parents.
The fact that there is monetary security on the head of the student in the event of occurrence of any unforeseen calamity gives a peace of mind. It is every parent’s dream to outlive the children.
When the unthinkable happens, say death, there is no time to think or look for money or cater for expenses that come along with death. The insurance cover may be used to cater for funeral expenses and pay pending bills at the hospital. This point may be disturbing as no one wishes to die, but death is inevitable.
The rate is locked in
The rate is fixed; it becomes affordable for whoever will be paying for the life insurance cover of the student. Whether the parent or the student, this will align itself to the budget, however slim it may be, as the rate applied at the beginning of the policy never changes for the rest of years till maturity of the same.
This information should, however, be verified before appending any signature to a policy cover since various insurance firms have different insurance policies going for different rates. The information should also be sealed in writing for future records.
Small policies are affordable
Since the insurance policy for students is advisable to cover them from their childhood, the patent would not require a million-dollar policy to cover for the same. It will be smaller since it will be covering a student right from his pre-school days.
With the low costs of policy beginning from around 5000 US Dollars, the total costs are generally inexpensive, a thing that can easily be embraced by a low-income family. For many students, the affordability of the same justifies consideration for purchasing a life insurance cover.
As seen in the article, the value of life insurance coverage has been explicitly highlighted to prospective students and families who would wish to have the same.
It is noted, sensibly, that a life insurance policy cover is a certain way to have a peaceful mind as a student or as a family, and as a security in the occurrence of any unthinkable, unfortunate event that may leave a permanent scar.